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Bouygues: Nine-month 2024 results
NINE-MONTH 2024 RESULTS
The Board of Directors, chaired by Martin Bouygues, met on 4 November 2024 to close off the financial statements for the first nine months of 2024.
KEY FIGURES
(a) Up 2% like-for-like and at constant exchange rates.
(b) Includes PPA amortisation of €68m in 9M 2024 and of €77m in 9M 2023.
(c) Includes net non-current charges of €177m in 9M 2024 and of €146m in 9M 2023.
(d) Excluding the future increase in the tax rate for 2024 which would result from the new French Finance Act.
OUTLOOK FOR 2024 CONFIRMED
The outlook below is based on information known to date.
Outlook for the Group
In 2024, Equans will continue to improve its results in line with its strategic Perform plan. Bouygues Immobilier will continue to face a challenging market environment, with low visibility on the timetable for recovery.
In an uncertain economic and geopolitical environment, and after a year of strong growth, Bouygues is targeting sales and current operating profit from activities (COPA) for 2024 that are slightly up on 2023.
Outlook for Equans
In 2024, Equans will continue to roll out its strategic plan. It will remain focused on improving performance in a supportive environment and will continue to prioritise margins over volume growth. The 2024 sales figure will be close to, yet slightly above, that of 2023. It will factor in both the effects of growth in Equans' markets and the scope effect related to the asset-based activity disposals at end-2023, and the selective approach to contracts strategy.
As a reminder, Equans is aiming for:
Outlook for the TF1 group
The TF1 group maintains its outlook for 2024, despite a more challenging economic environment for the rest of the year:
Outlook for Bouygues Telecom
In 2024, Bouygues Telecom confirms it is aiming for:
DETAILED ANALYSIS BY SECTOR OF ACTIVITY
CONSTRUCTION BUSINESSES
At end-September 2024, the backlog in the construction businesses
(Bouygues Construction, Colas and Bouygues Immobilier) reached the very high level of €31.8 billion, up 7% year-on-year (up 8% at constant exchange rates and excluding principal disposals and acquisitions), and provides visibility on future activity. The international backlog increased 6% year-on-year, driven notably by the award of major contracts at Bouygues Construction, reflecting good momentum in Civil Works. The backlog for France was up 9% year-on-year, driven by both Bouygues Construction and Colas.
In the first nine months of 2024, Bouygues Construction 's order intake was €10.1 billion, supported by good momentum in the normal course of business (contracts of less than €100 million), representing 47% of total order intake in the first nine months of 2024. Order intake was also driven by major contract awards, such as, in the third quarter, contracts to build the Torrens to Darlington highway tunnel (for over €2 billion), and redevelop Ryde Hospital (for around €250 million) in Australia, to build a hotel complex in the Dominican Republic (for around €120 million) and a residential building in Florida (for around €100 million). Bouygues Construction's backlog stood at €17.9 billion at end-September 2024, up 18% year-on-year (up 19% at constant exchange rates and excluding principal disposals and acquisitions). This growth was driven by Civil Works, where the backlog increased 43% year-on-year, while the Building backlog was broadly stable year-on-year (up 1%).
Colas recorded an order intake of €9.8 billion in the first nine months of 2024. In Roads, the order intake increased slightly in France and was down internationally year-on-year, related notably to the completion of major projects and some delayed projects in North America, as well as the geographic repositioning of activities in certain countries. In Rail, the order intake was lower year-on-year, but is not representative of business activity due to an unfavourable comparison basis, and the disposal of Colas Rail Italy (which had an order intake and backlog of around €0.4 billion). Colas' backlog totalled €12.8 billion, almost stable at constant exchange rates and excluding principal disposals and acquisitions. The backlog as published was down 4% year-on-year, with Roads down 5% and Rail down 2% year-on-year . The Rail backlog for Colas at end-September 2024 had yet to include the renovation contract for Line 1 of the Cairo metro.
Bouygues Immobilier still has to contend with a challenging market environment. In France, Residential property unit reservations showed some improvement. Commercial property activity remains at a standstill. The backlog was 18% lower than at end-September 2023.
The construction businesses reported sales of €20.2 billion in the first nine months of 2024, up 1% year-on-year, driven by Bouygues Construction. Like-for-like and at constant exchange rates, sales also increased 1%. Bouygues Construction's sales rose 5% year-on-year. Sales rose slightly for Civil Works (up 2% year-on-year). Sales for International Building increased very sharply (up 17% year-on-year) while decreasing slightly for France Building (down 3% year-on-year). Sales at Colas were stable year-on-year, driven by Rail (up 5% year-on-year), while Roads was stable year-on-year, as slightly higher sales in France were offset by a slight decrease internationally. Bouygues Immobilier's sales declined 13% versus the first nine months of 2023, reflecting the challenging market environment. Sales from Residential property were down 11% year-on-year and sales from Commercial property were very low.
The COPA in the construction businesses was €476 million in the first nine months of 2024, down €23 million year-on-year, and the COPA margin in the construction businesses decreased slightly (down 0.1 point) over the period to 2.4%.
Bouygues Construction's COPA increased €29 million to €219 million at end-September 2024 and its margin from activities was 2.9%, improving by 0.3 points year-on-year. At Colas, COPA was €306 million, almost stable year-on-year, and its margin from activities was 2.6%, stable year-on-year. As a reminder, COPA in third-quarter 2023 at Colas included a significant gain on a land sale in the United States. COPA declined €50 million year-on-year at Bouygues Immobilier, resulting in a current operating loss from activities of €49 million, notably due to a sharp decline in its business activity.
EQUANS
Equans posted an order intake of €14.1 billion in the first nine months of 2024, up both in France and internationally. Significant orders were booked in the third quarter, including notably an electrical and mechanical works contract for the healthcare sector in Canada and a contract to fit out and install equipment in a UK data centre. Each contract is worth approximately €140 million. Order intake also reflected good momentum in recurrent maintenance contracts and in the normal course of business. The underlying margin of the order intake continued improving. Equans' backlog was €25.8 billion at end-September 2024, rising by 4% versus end-December 2023 but down slightly year-on-year. This reflects the selective approach to contracts strategy and the gradual exit from the new-build business in the UK (building of new homes, notably social housing) due to unfavourable market conditions.
Equans posted a 3% year-on-year increase in sales to €14.1 billion for the first nine months of 2024, lifted by overall solid momentum in France and abroad. This was despite the divestment of activities in late 2023 and the gradual exit from the new-build business in the UK. Sales were also driven by the major growth posted by the speciality activities, particularly solar power, data centres and smart factories. Current operating profit from activities was €474 million, an increase of €97 million versus the first nine months of 2023. The margin from activities was therefore 3.4%, up 0.6 points versus the first nine months of 2023, reflecting the continued successful roll-out of the Perform plan in all of Equans' operating units.
TF1
TF1 group's audience ratings remained at a high level for the first nine months of 2024, with an audience share of 33% in the WPDM 50 category and of 30% among individuals aged 25-49.
TF1 group reported sales of €1.6 billion in the first nine months of 2024, representing a 3% increase year-on-year (up 2% like-for-like and at constant exchange rates):
Current operating profit from activities (COPA) was €198 million, close to the nine-month 2023 figure, reflecting a €43 million year-on-year increase in the programming costs, exceptional expenditure related to the launch of TF1+ and the positive impact of a brand licence divestment in the third quarter. The margin from activities was 12.4%, a decrease of 0.7 points year-on-year.
BOUYGUES TELECOM
In Fixed, FTTH customers totalled four million at end-September 2024, thanks to 408,000 new adds in the first nine months of 2024, of which 159,000 in the third quarter. The Fixed customer base was 5.1 million, of which 82,000 new adds in the third quarter. The share of Fixed customers subscribing to a FTTH plan continued to increase, reaching 79% versus 71% one year earlier. Bouygues Telecom continued extending its geographical reach, with national coverage at around 90% and with 37.5 million FTTH premises marketed to date. Bouygues Telecom is targeting around 40 million by the end of 2026. Year-on-year, Fixed ABPU increased €2.3 to €33.2 per customer per month.
Mobile plan customers excluding MtoM totalled 15.8 million, thanks to 246,000 new adds in the first nine months of the year (of which 170,000 in the third quarter), compared with new adds of 217,000 in the first nine months of 2023 (of which 108,000 in the third quarter of 2023). As expected, ABPU Mobile decreased €0.2 year-on-year to €19.6 per customer per month, due to sustained competition in the low-end segment and the rising cost of living, which has been leading some customers to migrate to cheaper plans.
Sales billed to customers reached €4.6 billion, up 5% versus the first nine months of 2023. Sales from services rose 4% year-on-year. In total, Bouygues Telecom's sales were stable year-on-year, impacted by the decline in Other sales (down 13% year-on-year), which mainly consist of Handset, Accessories and Built-to-suit sales.
EBITDA after Leases came to €1,506 million in the first nine months of 2024, rising by €55 million year-on-year. This was driven by higher sales billed to customers combined with sustained efforts to control costs amid the rising operating expenses associated with the sharp growth in the FTTH customer base. EBITDA after Leases margin was 32.5%, almost unchanged versus end-September 2023.
Current operating profit from activities (COPA) was €603 million, up €18 million year-on-year. The increase in EBITDA after Leases was partially offset by the increase in depreciation and amortisation over the period. A review of some depreciation periods for certain assets has nonetheless led to a one-off positive effect on COPA in third-quarter 2024. Operating profit was €571 million and included net non-current charges of €14 million.
Gross capital expenditure excluding frequencies amounted to €1,084 million at end-September 2024, in line with full-year outlook.
Acquisition of La Poste Telecom
In its press release dated 29 May 2024, Bouygues Telecom stated that it had been informed by SFR and La Poste of divergences between them concerning the terms and conditions of the transaction provided for in the exclusivity agreement signed by Bouygues Telecom with the La Poste group for the acquisition of La Poste Telecom.
Bouygues Telecom was informed that these divergences have been resolved on 4 November 2024.
In addition, as the necessary administrative authorisations have been obtained and SFR has waived its pre-emption right, the parties have agreed to complete the transaction before the end of the year.
Bouygues Telecom will adapt its guidance to factor in the acquisition of La Poste Telecom in the months following completion of the transaction at the latest.
FINANCIAL SITUATION
At €13.9 billion, the Group maintained a very high level of liquidity, which comprised €2.7 billion in cash and equivalents, supplemented by €11.2 billion in undrawn medium- and long-term credit facilities.
Net debt at end-September 2024 was €8.5 billion, versus €6.3 billion at end-December 2023 and €10.2 billion at end-September 2023. The change between end-December 2023 and end-September 2024 reflected mainly:
In the first nine months of 2024, the change in working capital requirements (WCR) related to operating activities and other was a negative €2.0 billion, representing an improvement relative to the prior-year period, in which this change was a negative €2.2 billion.
Net gearing was 61%, an improvement versus end-September 2023 (74%). Net gearing at end-December 2023 was 44%.
At end-September 2024, the average maturity of the Group's bonds was 7.6 years, and the average coupon was 3.01% (average effective rate of 2.25%). The debt maturity schedule is well spread over time, and the next bond redemption will be in October 2026.
The long-term credit ratings assigned to the Group by Moody's and Standard & Poor's are: A3, stable outlook, and A-, negative outlook, respectively.
FINANCIAL CALENDAR
6 March 2025: Full-year 2024 results (7.30am CET)
The financial statements have been subject to a limited review by the statutory auditors and the corresponding report has been issued.
You can find the full financial statements and notes to the financial statements on www.bouygues.com/results.
The results presentation conference call for analysts will start at 9.00am (CET) on 5 November 2024.
Details on how to connect are available on
www.bouygues.com .
The results presentation will be available before the conference call starts
on www.bouygues.com/results.
ABOUT BOUYGUES
Bouygues is a diversified services group operating in over 80 countries with 201,500 employees all working to make life better every day. Its business activities in
construction (Bouygues Construction, Bouygues Immobilier, Colas);
energies & services (Equans); media (TF1) and
telecoms (Bouygues Telecom) are able to drive growth since they all satisfy constantly changing and essential needs.
INVESTORS AND ANALYSTS CONTACT:
investors@bouygues.com • Tel.: +33 (0)1 44 20 11 01
PRESS CONTACT:
presse@bouygues.com • Tel.: +33 (0)1 44 20 12 01
BOUYGUES SA • 32 avenue Hoche • 75378 Paris Cedex 08 • bouygues.com
NINE-MONTH 2024 BUSINESS ACTIVITY
BACKLOG IN THE CONSTRUCTION BUSINESSES
(a) Up 19% at constant exchange rates and excluding principal disposals and acquisitions.
(b) Down 18% at constant exchange rates and excluding principal disposals and acquisitions.
(c) Down 1% at constant exchange rates and excluding principal disposals and acquisitions.
(d) Up 8% at constant exchange rates and excluding principal disposals and acquisitions.
BOUYGUES CONSTRUCTION ORDER INTAKE
BOUYGUES IMMOBILIER RESERVATIONS
COLAS BACKLOG
EQUANS BACKLOG
TF1 AUDIENCE SHARE
(a) Source Médiamétrie – Women under 50 who are purchasing decision-makers.
BOUYGUES TELECOM CUSTOMER BASE
NINE-MONTH 2024 FINANCIAL PERFORMANCE
GROUP CONDENSED CONSOLIDATED INCOME STATEMENT
(a) Up 2% like-for-like and at constant exchange rates.
(b) Purchase Price Allocation.
(c) Includes net non-current charges of €33m at Bouygues Construction, of €27m at Bouygues Immobilier, of €67m at Equans, of €19m at TF1, of €14m at Bouygues Telecom and of €17m at Bouygues SA.
(d) Includes net non-current charges of €60m at Bouygues Construction, of €7m at Colas, of €47m at Equans, of €24m at TF1, of €7m at Bouygues Telecom and of €1m at Bouygues SA.
GROUP SALES BY SECTOR OF ACTIVITY
(a) Total of the sales contributions (after eliminations within the construction businesses).
(b) Including intra-Group eliminations of the construction businesses.
(c) Like-for-like and at constant exchange rates.
CALCULATION OF GROUP EBITDA AFTER LEASES
(a) See glossary for definitions.
CONTRIBUTION TO GROUP EBITDA AFTER LEASES BY SECTOR OF ACTIVITY
(a) See glossary for definitions.
CONTRIBUTION TO GROUP CURRENT OPERATING PROFIT FROM ACTIVITIES (COPA) BY SECTOR OF ACTIVITY
(a) See glossary for definitions.
RECONCILIATION OF CURRENT OPERATING PROFIT FROM ACTIVITIES (COPA) TO CURRENT OPERATING PROFIT (COP) FOR THE FIRST NINE MONTHS OF 2024
(a) Amortisation and impairment of intangible assets recognised in acquisitions.
RECONCILIATION OF CURRENT OPERATING PROFIT FROM ACTIVITIES (COPA) TO CURRENT OPERATING PROFIT (COP) FOR THE FIRST NINE MONTHS OF 2023
(a) Amortisation and impairment of intangible assets recognised in acquisitions.
CONTRIBUTION TO GROUP CURRENT OPERATING PROFIT (COP) BY SECTOR OF ACTIVITY
CONTRIBUTION TO GROUP OPERATING PROFIT BY SECTOR OF ACTIVITY
(a) Includes net non-current charges of €33m at Bouygues Construction, of €27m at Bouygues Immobilier, of €67m at Equans, of €19m at TF1, of €14m at Bouygues Telecom and of €17m at Bouygues SA.
(b) Includes net non-current charges of €60m at Bouygues Construction, of €7m at Colas, of €47m at Equans, of €24m at TF1, of €7m at Bouygues Telecom and of €1m at Bouygues SA.
CONTRIBUTION TO NET PROFIT ATTRIBUTABLE TO THE GROUP BY SECTOR OF ACTIVITY
NET SURPLUS CASH (+)/NET DEBT (-) BY BUSINESS SEGMENT
CONTRIBUTION TO GROUP NET CAPITAL EXPENDITURE BY SECTOR OF ACTIVITY
CONTRIBUTION TO GROUP FREE CASH FLOW BY SECTOR OF ACTIVITY
(a) See glossary for definitions.
GLOSSARY
ABPU (Average Billing Per User):
Available cash : the aggregate of cash and cash equivalents and the positive fair value of hedging instruments.
BtoB (business to business) : when one business makes a commercial transaction with another.
Backlog:
Under IFRS 11, Bouygues Immobilier's backlog does not include sales from reservations taken via companies accounted for by the equity method (co-promotion companies where there is joint control).
Business segment: designates each one of the Bouygues group's six main subsidiaries, namely
Bouygues Construction, Bouygues Immobilier, Colas, Equans, TF1 and Bouygues Telecom.
Change in sales like-for-like and at constant exchange rates:
Construction businesses : Bouygues Construction, Bouygues Immobilier and Colas.
Current operating profit/(loss) from activities (COPA) : current operating profit from activities equates to current operating profit before amortisation and impairment of intangible assets recognised in acquisitions (PPA).
EBITDA after Leases : current operating profit after taking account of the interest expense on lease obligations, before (i) net charges for depreciation, amortisation and impairment losses on property, plant and equipment and intangible assets, (ii) net charges to provisions and other impairment losses and (iii) effects of losses of control. Those effects relate to the impact of remeasuring retained interests.
EBITDA margin after Leases (Bouygues Telecom): EBITDA after Leases as a proportion of sales from services.
Energies & services : Equans.
Free cash flow : net cash flow (determined after (i) cost of net debt, (ii) interest expense on lease obligations and (iii) income taxes paid), minus net capital expenditure and repayments of lease obligations. It is calculated before changes in working capital requirements (WCR) related to operating activities and excluding frequencies.
FTTH (Fibre to the Home): optical fibre from the central office (where the operator's transmission equipment is installed) all the way to homes or business premises (Arcep definition).
FTTH premises secured: premises for which the horizontal is deployed, being deployed or ordered up to the concentration point.
FTTH premises marketed: the connectable sockets, i.e. the horizontal and vertical deployed and connected via the concentration point.
Group (or the Bouygues group): designates Bouygues SA and all the entities that are controlled directly or indirectly by Bouygues SA as defined in Article L. 233-3 of the French Commercial Code.
Liquidity: the aggregate of available cash, the fair value of hedging instruments and undrawn, confirmed medium- and long-term credit facilities.
MtoM: machine to machine communication. This refers to direct communication between machines or smart devices or between smart devices and people via an information system using mobile communications networks, generally without human intervention.
Net surplus cash/(net debt): the aggregate of cash and cash equivalents, overdrafts and short-term bank borrowings, non-current and current debt, and the fair value of financial instruments. Net surplus cash/(net debt) does not include non-current and current lease obligations. A positive figure represents net surplus cash and a negative figure represents net debt. The main components of change in net debt are presented in Note 7 to the consolidated financial statements at 30 September 2024, available at bouygues.com .
Order intake (Bouygues Construction, Colas, Equans): a project is included under order intake when the contract has been signed and has taken effect (the notice to proceed has been issued and all suspensory clauses have been lifted) and the financing has been arranged. The amount recorded corresponds to the sales the project will generate.
Reservations by value (Bouygues Immobilier) : the € amount of the value of properties reserved over a given period.
For co-promotion companies:
Sales from services (Bouygues Telecom) comprise:
Other sales (Bouygues Telecom): difference between Bouygues Telecom's total sales and sales from services.
It comprises:
Wholesale: wholesale market for telecoms operators.
1 Excluding the future increase in the tax rate for 2024 which would result from the new French Finance Act.
2 Includes non-current charges of €33m at Bouygues Construction, of €27m at Bouygues Immobilier, of €67m at Equans, of €19m at TF1, of €14m at Bouygues Telecom and of €17m at Bouygues SA.
3 Net debt/shareholders' equity.
4 Free cash flow before cost of net debt, interest expense on lease obligations and income taxes paid.
5 The Rail backlog was up 8% at constant exchange rates and excluding principal disposals and acquisitions.
6 Excluding the share of co-promotions.
7 Women under 50 who are purchasing-decision makers.
8 Net debt/shareholders' equity.
Attachment
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